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Online Retailers Facing Up To 98% Cart Abandonment Rates As Consumer Spending Slows

Research released in April 2023, seen by digital agency Neural Edge, revealed that in 2022, some retailers faced up to 98% cart abandonment rates, resulting in billions in lost revenue for many businesses.

Research released in April 2023, seen by digital agency Neural Edge, revealed that in 2022, some retailers faced up to 98% cart abandonment rates, resulting in billions in lost revenue for many businesses.


The study measured cart abandonment rates across several industry categories and devices and highlights the need for businesses to optimise their strategies for specific categories and devices.


One potential cause is highlighted in recent statistics released by Barclays, which shows consumer spending in the UK grew just 5.9 per cent year-on-year in February. This figure is below the latest CPIH inflation rate of 8.8 per cent, indicating that consumers are spending less money due to rising inflation.


Cart Abandonment By Category


Marina Pasqual’s research found that cruise and ferry travel services had the highest cart abandonment rates, with a staggering 98 per cent. This indicates that there is a lot of work to be done in the travel industry to provide consumers with a seamless booking experience. 


However, cart abandonment varies significantly by category. Grocers and consumer electronics had a relatively low abandonment rate of 50 per cent, while gardening and DIY had a 79 per cent abandonment rate, and fashion had an 87 per cent abandonment rate.


The Role of Mobile 


As more consumers turn to mobile devices for online shopping, the trend of high cart abandonment rates among mobile users continues. This emphasises the importance of mobile optimisation and user experience to reduce cart abandonment rates.


“When shopping for goods online, it is common for consumers to pull out of a transaction, leaving the order incomplete: In the fourth quarter of 2022, approximately 80 per cent of orders on mobile devices in the UK were not completed. During that same three-month period, over seven in ten carts created were left abandoned on both computers and tablets as well.”


Cart Abandonment Reasons


The primary reason for abandoning an online shopping order, according to Pasqual’s research, is extra costs, including shipping and fees. This highlights the need for businesses to be transparent about their pricing and shipping policies. Hidden fees or unexpected shipping costs can cause frustration and distrust among consumers, leading to cart abandonment.


Following the high cost of extra fees, the requirement to create an account on the website is the second leading cause of cart abandonment. Offering guest checkout options can reduce friction and improve the user experience. Businesses can also incentivise account creation by offering exclusive discounts or loyalty points.


Neural Edge's managing director, Ben Barnes, stated, "These statistics demonstrate that businesses need to optimise their pricing and checkout experience to reduce cart abandonment rates. Consumers expect transparency, simplicity, and convenience, and it's up to businesses to deliver on these expectations."


In addition to optimising pricing and checkout experience, businesses can improve their cart abandonment rates by implementing effective eCommerce SEO strategies. SEO, or search engine optimisation, is the process of optimising a website's content and structure to increase visibility and organic traffic from search engines. By implementing SEO best practices, businesses can improve their website's visibility and attract more qualified traffic.


One of the key components of SEO is keyword research. Keyword research involves identifying the search terms that consumers use to find products or services in a specific category. 


By incorporating these keywords into website content, businesses can improve their website's relevance and visibility for those search terms. For example, a business selling gardening tools can use keywords such as "garden tools," "gardening supplies," or "outdoor equipment" to improve their website's relevance and visibility for those search terms.


Another important aspect of eCommerce SEO is website structure and navigation. A well-structured website with clear navigation can improve user experience and increase conversion rates. This is especially important for mobile users, who often have limited screen space and may abandon a website if they cannot find what they are looking for quickly.


In conclusion, Pasqual’s research offers valuable insights for businesses looking to improve their online sales and optimise their customer experience. By addressing the primary reasons for cart abandonment and tailoring their strategies to their specific category and device, businesses can significantly reduce cart abandonment rates and increase revenue.

Contact Info:
Name: Ben Barnes
Email: Send Email
Organization: Neural Edge
Website: https://neuraledge.digital/

Release ID: 89094425

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